Chapter 14, Problem 9E

To determine

Bond issuance: It is one of the techniques used by an organization for raising money.

(a)

To prepare: To prepare the journal entries for bond issuance on premium.

(1)

To determine

(2)

To prepare: To prepare the journal entry for the payment of interest.

To determine

(3)

To prepare: To prepare the journal entry for the payment of interest.

To determine

(4)

To prepare: To prepare the journal entry for the payment of interest.

To determine

(b)

To prepare: To prepare the presentation of balance sheet for the liability of bonds payable.

To determine

(c)

(1)

To determine the amount of interest expense to be reported.

To determine

(2)

To determine the amount of bond interest expense reported in 2018, if straight line method of amortization is used.

To determine

(3)

To determine the cost of borrowing.

To determine

(4)

To determine the amount of bond interest expense.